You may think that it is easy to get a £500 loan but actually it can be trickier than you think. Even if you have a good credit record, then lenders will often want you to borrow money and this can mean that you will be paying back more in interest and costs than necessary because you are borrowing more than you need. Most people use credit they already have access to in this situation such as a credit card or a loan. Although they can have advantages, as they are instant, they can be expensive, with no repayment plan and it means that you could end up owing the money for a really long time. Also if you have a poor credit limit then you will be unlikely to have these available to you anyway. This is where a short-term loan can be useful.
Representative Example: £400 borrowed for 90 days. Total amount repayable is £561.92 in 3 monthly instalments of £187.31. Interest charged is £161.92, interest rate 161.9% (variable). Representative 305.9% APR. We are a broker not a lender. We don't charge fees. We don't sell your personal information.
The short term loan is specifically designed for lending small amounts of money and often consider people who have poor credit records. This is an ideal solution if you need money in an emergency and do not have access to any other methods of borrowing. They have to be repaid quickly too, which means that you will not have a loan hanging around for long.
Short-term lenders always perform a credit check, but it is not always the case that those with a poor credit record can’t have them, but that they can be arranged really quickly and so if you need the money in an emergency, it will be available for you.
The lender will normally make you set up a direct debit so that the repayment goes out on the right day. They will often coincide this with the day that you are paid, so that they can guarantee that the money is there. It is important for you to make sure that you can afford that repayment, not only meaning that you have enough money when it is due, but also that you can cope financially still until you are next paid.
The first thing to do is to make sure that you keep the cost down as much as possible and then the loan repayment will be smaller. This can be done by only borrowing exactly the amount of money that you need. It is also important to choose a cheap lender so that you do not pay more than necessary for the loan. You can more easily find lenders by going to Omacl who will match you with a lender willing to lend you money. Repaying on time is the key thing that will keep your costs down because late repayments will be charged for.
Therefore, before you take out the payday loan advance you will need to make sure that you have a plan on how you will repay it. Therefore think about how much money you usually have left over each month and whether that would be enough to cover the repayments. If not, then you may have to choose a loan with a longer term for repaying in more instalments so that it is more manageable. You may also need to think about how you can spend less or earn more so that you can cover the costs and how to set a budget and stick to it.
It is wise to start by looking at the items that you need to pay for each month. Bills that come in regularly, necessities you have to buy like food and transport to work and things like this. You will then have a list of your expenses and you will need to add in the loan repayments and see whether you have enough money to pay for it when you are paid. If you do not, then you will need to think of a way to get some extra money. You will need to make sure that you stick to the budget that you set each month that you have a repayment to make, which should mean that you will be able to pay off the loan and manage you necessary bills as well.